ESSEX– The board of finance made no changes to a proposed $7.2 million town government budget and a proposed $7.74 appropriation for Essex Elementary School after a quiet budget hearing Thursday.
About 25 residents turned out for the public hearing. There were no objections or calls for specific changes to the spending plans,despite an anticipated increase in the property tax rate that is largely driven by the results of a townwide property revaluation completed last year. The revaluation, the first for Essex since the start of the national Great Recession in 2008, resulted in a 7.72 percent drop in the grand list of taxable property that is used to establish a tax rate.
The town government budget of $7,202,161 represents a $234,700, or 3.37 percent, spending increase over the current town government appropriation. The budget for the elementary school, $7,742,313, is up by $107,396, or 1.41 percent, from the current appropriation.
The total spending levy for 2014-2015 also incudes the town’s $8,112,489 share of the Region 4 education budget that funds the operation of Valley Regional High School and John Winthrop Middle school. The Region 4 share is up by only $30,717, a much smaller increase than recent years because of a smaller rise in the number of students from Essex attending the two secondary schools.
Former Selectman Vince Pacileo asked the key question of the budget hearing, specifically where would the spending plans put the town’s tax rate when the new fiscal year begins in July. The current tax rate is 18.99 mills, or $18.99 in tax for each $1,000 of assessed property value. The tax rate increased by 0.52 mills last year to current town/school spending.
First Selectman Norman Needleman said a tax rate of 20.4 mills would be required under the new grand list to cover current 2013-2014 spending. With total requested new spending of $372,813, a slightly higher tax rate could be required for 2014-2015. Under the new grand list, a tax mill raises about $1 million in revenue.
Pacileo also asked the expected total for the town’s undesignated fund balance at the start of the next fiscal year in July. Finance Director Kelly Sterner said the fund balance is expected to contain about $2.7 million.
The finance board will set a tax rate for 2014-2015 after the town and school budgets are approved by voters. The board could use a transfer from the fund balance to limit the tax increase for 2014-2015. But in recent years the board has not favored use of the fund balance to defray increases in the tax rate
The town government and elementary school budgets are scheduled for a vote at the annual budget meeting on May 12, though residents could petition for an eight-hour referendum vote on these components of the budget. The Region 4 education budget goes to the voters of Chester, Deep River, and Essex in a 12 noon to 8 p.m. referendum on May 6.